What the LEL does
The LEL is the first of the Class 1 thresholds and does three jobs. It protects the employee's record: GOV.UK says someone earning from £129 to £242 a week from one job usually pays no National Insurance, yet their contributions are treated as having been paid. That keeps qualifying years for the State Pension and some benefits.
It is the earnings test for some statutory payments. For Statutory Maternity Pay, average weekly earnings in the relevant period must not be less than the LEL in force at the end of the qualifying week. Statutory Sick Pay dropped its earnings test on 6 April 2026: HMRC now pays it to eligible employees regardless of earnings, at 80% of average weekly earnings or £123.25 a week, whichever is lower.
And it is a payroll reporting field. HMRC's guidance on what to report sets an Earnings at the LEL figure on each Full Payment Submission, leaving out payments below the LEL.
Every Class 1 threshold for 2026/27
| Threshold | Weekly | Monthly | Yearly |
|---|---|---|---|
| Secondary threshold (employer NI starts) | £96 | £417 | £5,000 |
| Lower earnings limit | £129 | £559 | £6,708 |
| Primary threshold (employee NI starts) | £242 | £1,048 | £12,570 |
| Upper earnings limit | £967 | £4,189 | £50,270 |
Take a part-time cleaner on £180 a week, category A. That is above the £129 LEL, so the week counts towards their record. It is below the £242 primary threshold, so they pay no NI. You, the employer, pay 15% on the £84 above the £96 secondary threshold: £12.60.
Seeing the LEL on a payslip
The LEL rarely has a line of its own. You see its effect: a payslip with gross pay between £129 and £242 a week shows an NI deduction of £0.00 and still counts for the employee's record. Payroll software reports the earnings at the LEL to HMRC in the background. If an employee holds two jobs each paying under £129 a week, neither builds the record, because each job is tested on its own.
Read next
Related terms
Questions
What is the lower earnings limit for 2026/27?
£129 a week, £559 a month or £6,708 a year, from 6 April 2026 to 5 April 2027, according to HMRC's rates and thresholds for employers.
Do employees pay National Insurance at the lower earnings limit?
No. Employee NI starts at the primary threshold, £242 a week. Between £129 and £242 the employee pays nothing, but GOV.UK treats their contributions as paid, which protects their National Insurance record.
Does the lower earnings limit still affect Statutory Sick Pay?
Not since 6 April 2026. HMRC's guidance says SSP is now available to eligible employees regardless of earnings. Statutory Maternity Pay still uses the LEL as its average weekly earnings test.
Sources
- HMRC: Rates and thresholds for employers 2026 to 2027 (read 8 October 2026)
- GOV.UK: National Insurance (read 8 October 2026)
- HMRC: Statutory Maternity Pay, manually calculate your employee's payments (read 8 October 2026)
- HMRC: Sickness absences that start before and end on or after 6 April 2026 (read 8 October 2026)
- HMRC: Payroll information to report to HMRC (read 8 October 2026)
Figures are for the 2026/27 tax year unless the text says otherwise. This page explains a payroll term; it is general information, not tax or legal advice.